Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)
EV to EBITDA Ratio, Current
EV to EBITDA Ratio, Historical

McKesson Corp., EBITDA calculation

US$ in millions

12 months ended:	Mar 31, 2016	Mar 31, 2015	Mar 31, 2014	Mar 31, 2013	Mar 31, 2012	Mar 31, 2011
Net income attributable to McKesson Corporation	2,258)	1,476)	1,263)	1,338)	1,403)	1,202)
Add: Net income attributable to noncontrolling interest	52)	67)	(5)	—)	—)	—)
Less: Income (loss) from discontinued operations, net of tax	(32)	(299)	(96)	—)	—)	72)
Add: Income tax expense	908)	815)	742)	581)	516)	505)
Earnings before tax (EBT)	3,250)	2,657)	2,096)	1,919)	1,919)	1,635)
Add: Interest expense	353)	374)	303)	240)	251)	222)
Earnings before interest and tax (EBIT)	3,603)	3,031)	2,399)	2,159)	2,170)	1,857)
Add: Depreciation	281)	306)	186)	146)	140)	139)
Add: Amortization	604)	711)	518)	445)	411)	357)
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,488)	4,048)	3,103)	2,750)	2,721)	2,353)

Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).

Download chart

Item	Description	The company
EBITDA	To calculate EBITDA analysts start with net earnings. To that earnings number, interest, taxes, depreciation, and amortization are added. EBITDA as a pre-interest number is a flow to all providers of capital.	McKesson Corp. EBITDA increased from 2014 to 2015 and from 2015 to 2016.

McKesson Corp., current EV/EBITDA calculation, comparison to benchmarks

Selected Financial Data (US$ in millions)
Enterprise value (EV)	40,477)
Earnings before interest, tax, depreciation and amortization (EBITDA)	4,488)
Valuation Ratio
EV/EBITDA	9.02
Benchmarks
EV/EBITDA, Competitors¹
Abbott Laboratories	18.21
Cigna Group	12.73
CVS Health Corp.	6.65
Elevance Health Inc.	10.57
Humana Inc.	6.05
Intuitive Surgical Inc.	53.22
Medtronic PLC	14.26
Shockwave Medical Inc.	63.05
UnitedHealth Group Inc.	13.24

Based on: 10-K (reporting date: 2016-03-31).

¹ Click competitor name to see calculations.

If the company EV/EBITDA is lower then the EV/EBITDA of benchmark then company is relatively undervalued.
Otherwise, if the company EV/EBITDA is higher then the EV/EBITDA of benchmark then company is relatively overvalued.

McKesson Corp., historical EV/EBITDA calculation, comparison to benchmarks

	Mar 31, 2016	Mar 31, 2015	Mar 31, 2014	Mar 31, 2013	Mar 31, 2012	Mar 31, 2011
Selected Financial Data (US$ in millions)
Enterprise value (EV)¹	43,051)	57,740)	49,411)	27,034)	22,057)	21,278)
Earnings before interest, tax, depreciation and amortization (EBITDA)²	4,488)	4,048)	3,103)	2,750)	2,721)	2,353)
Valuation Ratio
EV/EBITDA³	9.59	14.26	15.92	9.83	8.11	9.04
Benchmarks
EV/EBITDA, Competitors⁴
Abbott Laboratories	—	—	—	—	—	—
Cigna Group	—	—	—	—	—	—
CVS Health Corp.	—	—	—	—	—	—
Elevance Health Inc.	—	—	—	—	—	—
Humana Inc.	—	—	—	—	—	—
Intuitive Surgical Inc.	—	—	—	—	—	—
Medtronic PLC	—	—	—	—	—	—
Shockwave Medical Inc.	—	—	—	—	—	—
UnitedHealth Group Inc.	—	—	—	—	—	—

Based on: 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31).

¹ See details »

² See details »

³ 2016 Calculation
EV/EBITDA = EV ÷ EBITDA
= 43,051 ÷ 4,488 = 9.59

⁴ Click competitor name to see calculations.

Download chart

Valuation ratio	Description	The company
EV/EBITDA	Enterprise value to earnings before interest, tax, depreciation and amortization is a valuation indicator for the overall company rather than common stock.	McKesson Corp. EV/EBITDA ratio decreased from 2014 to 2015 and from 2015 to 2016.

McKesson Corp. (NYSE:MCK)

Enterprise Value to EBITDA (EV/EBITDA)

Earnings before Interest, Tax, Depreciation and Amortization (EBITDA)

Enterprise Value to EBITDA Ratio, Current

Enterprise Value to EBITDA Ratio, Historical